Mumbai-based software services and consulting company Geometric Limited has announced that its German subsidiary, Geometric Europe GmbH, has acquired Munich-based electronics engineering firm 3Cap Technologies GmbH for € 11 million ($14.5 million).
Out of this, € 7.5 million will be paid up front and the balance payment will be subject to earn-out under mutually agreed terms and conditions over a maximum period of three years. Geometric is funding the acquisition out of accrued cash.
In the calendar year 2012, 3Cap had revenues of close to €11 million. The acquisition is effective January 1, 2013.
“This acquisition represents an important step in our strategy to provide greater capability and more comprehensive solutions in the digital product realisation space,” said Manu Parpia, MD and CEO, Geometric. “With this acquisition, we address two main needs of our customers - the ability to deliver embedded systems-based solutions and a stronger presence in Europe.”
Incorporated in 1994, Geometric offers services in engineering software and mechanical engineering. Its portfolio includes product lifecycle management, global engineering services and offshore product development solutions and technologies. Almost 70 per cent of its revenues come from US market.
The company is listed on the Bombay Stock Exchange and the National Stock Exchange of India. It has two main business subsidiaries. Geometric Engineering, Inc, headquartered in Rochester Hills MI, provides product engineering and manufacturing engineering solutions to the automotive and industrial sectors. The second subsidiary, Geometric Technologies Inc. is headquartered in Phoenix AZ and develops and supplies productivity solutions for manufacturing operations.
Geometric has a joint venture with Dassault Systèmes, 3D PLM Software Solutions Ltd., which was set up in 2002 with an equity participation of 58 per cent and 42 per cent respectively.
3Cap was founded 2004 by Henri Sadoune, a French national based out of Munich. Sadoune has entered into a long term agreement with Geometric and will take responsibility for all embedded systems activities, including Geometric’s existing embedded systems projects. With over 110 people on board, 3Cap mainly caters to automotive suppliers and offers services such as embedded systems development verification and validation and calibration in the areas of powertrain and chassis.
Henri Sadoune, MD, 3Cap Technologies said the association gives the company global reach and end-to-end capabilities.
(Edited by Prem Udayabhanu)